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'Dollars for the Argentine fiasco': the hard article of The Wall Street Journal against Argentina and the IMF

2021-09-01T23:54:52.331Z


The American newspaper criticizes the organization for sending money to the country. The comparison with Nicaragua and El Salvador.


09/01/2021 20:26

  • Clarín.com

  • Economy

Updated 09/01/2021 8:26 PM

The American newspaper The Wall Street Journal published a column in which it assures that the money that the International Monetary Fund (IMF) transferred to Argentina as part of the special drawing rights will allow the Government to

"pass the midterm elections. November without crisis and without making the necessary reforms to recover growth ”

.

The text, signed by columnist Maria Anastasia O'Grady, questions the IMF under the title "Dollars for the fiasco in Latin America."

The article emphasizes that economic resources are granted to countries with

"dictators", "unwelcome people" and "socialist governments"

, and exemplified with

Nicaragua, El Salvador and Argentina

.

"These are some of the bad actors in the Western Hemisphere who have received special drawing rights (SDRs) as part of a new blanket allocation of $ 650 billion," the columnist wrote.

And he added: "They do

not follow the rules of the international community

, but suddenly hundreds of millions of dollars at very low rates are falling into their coffers."

Hard article in The Wall Street Journal about Argentina and the IMF.

The IMF provides about US $ 650,000 million, distributed among the 190 members, which represent a multilateral asset that complements the official reserves of the nations.

Of that figure, Argentina received

about US $ 4,335 million

last week, corresponding to the 0.67% quota it has in the organization.

“Each one of the 190 members,” says O'Grady, “has received a new SDR allocation, according to their quota in the Fund, regardless of the nation's commitment to the rights of minorities, institutions or the State of Right".

"Oppressors will get a windfall, no questions asked,"

concludes the author.

After stating that this aid will allow the Government to pass the legislative elections "without a crisis" and without having carried out any reform towards a sustained growth of the economy, he adds that "the case of the SDR as a means of helping the poor is weak in Argentina".

“The country owes the IMF some 46 billion dollars with little prospect of repayment;

the two parties have been negotiating what would effectively be a debt rescheduling for months, but have not made progress. "

"The problem is the economic model of the socialist government of populist spending, high taxes, capital controls and inflation that exceeds 50% annually," he warned.

In addition, he stressed that "Argentina can no longer access the capital markets and investment has collapsed."

Among the conclusions, O'Grady assumes that the aid will be destined to the payment of principal and interest, "to keep up with the Fund."

"That is where the contribution to the poor is directed," he said.

Finally, the author of the article stated that “without an agreement and without access to the capital markets for next year, Argentina's only option will be to fall into default, since it will have to make payments to the IMF of 19,000 million dollars both in 2022 as in 2023 ″.

“There was a time when large multilateral donations were conditioned on attempts at good governance.

Those days passed ”, closed the article.

LM

Look also

Real investment grew 23.4% annually in July, but fell 2.9% in relation to June

The blue dollar fell to $ 181 and the country risk falls to 1499 points

Source: clarin

All business articles on 2021-09-01

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